Kodiak Gas Services, Inc. (KGS)
Profitability ratios
Return on sales
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 40.02% | 38.19% | 38.01% | 37.89% | 41.99% | 47.92% | 53.28% | 59.62% | 61.59% | 61.99% | 62.23% |
| Operating profit margin | 25.18% | 23.14% | 23.60% | 25.05% | 26.92% | 29.23% | 29.20% | 29.03% | 30.53% | 30.23% | 30.31% |
| Pretax margin | 9.46% | 6.07% | 6.55% | 3.64% | 7.87% | 10.46% | 4.13% | 5.12% | 9.49% | 8.23% | 15.96% |
| Net profit margin | 6.48% | 3.97% | 4.35% | 2.27% | 5.28% | 7.15% | 2.36% | 3.78% | 7.22% | 6.30% | 12.18% |
The profitability analysis of Kodiak Gas Services, Inc. over the period from December 2022 to June 2025 reveals notable trends in key financial ratios, reflecting the company’s evolving profitability profile.
Gross profit margin demonstrated a consistent decline during the period, starting at 62.23% at the end of 2022 and decreasing to 37.89% by September 2024. Although there was a slight recovery to 38.01% in late 2024 and into the first half of 2025, the overall trend indicates a narrowing of gross margin, suggesting increased cost of goods sold or margin pressures impacting gross profitability.
Operating profit margin remained relatively stable around 30% during most of 2022 and the first half of 2023, with minor fluctuations. However, from the second half of 2023 onward, there was a gradual decline, reaching as low as 23.14% in March 2024 and 25.18% in June 2025. The persistent decrease in operating margins indicates increasing operating expenses or reduced efficiency impacting core profitability.
Pre-tax margins experienced more volatility, starting at 15.96% in December 2022, declining sharply to a low of approximately 3.64% in September 2024. Thereafter, the pre-tax margin showed signs of recovery, reaching 9.46% in June 2025. The initial decline reflects increased costs or operational challenges affecting pre-tax earnings, while the subsequent improvement suggests partial mitigation of these issues or changes in tax or expense structures.
Net profit margins followed a similar pattern, declining from 12.18% at the end of 2022 to a low of approximately 2.27% in September 2024. A modest recovery ensued, with the margin rising to 6.48% by June 2025. The overall downward trajectory indicates increasing challenges in translating gross profits into net income, possibly due to higher operational costs, interest expenses, or other non-operating factors impacting bottom-line profitability.
In summary, Kodiak Gas Services, Inc. has experienced a downward trend across all key profitability ratios over the analyzed period. This pattern suggests augmented cost pressures, margin compression, and potential operational challenges that have affected both gross and net profitability. The partial recovery in early 2025 warrants attention but does not fully offset the preceding declines, indicating a cautious outlook on the company’s overall profitability trajectory.
Return on investment
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.41% | 6.64% | 6.17% | 6.00% | 5.95% | 7.72% | 6.67% | 7.20% | 7.07% | 6.86% | 6.69% |
| Return on assets (ROA) | 1.90% | 1.14% | 1.14% | 0.54% | 1.17% | 1.89% | 0.54% | 0.94% | 1.67% | 1.43% | 2.69% |
| Return on total capital | 24.26% | 20.98% | 20.08% | 18.09% | 19.02% | 23.80% | 20.57% | 22.54% | 158.04% | 123.71% | 126.07% |
| Return on equity (ROE) | 6.18% | 3.76% | 3.70% | 1.96% | 3.95% | 5.47% | 1.76% | 2.60% | 28.28% | 21.13% | 37.63% |
The analysis of Kodiak Gas Services, Inc.'s profitability ratios over the indicated periods reveals several notable trends and insights.
Starting with the Operating Return on Assets (Operating ROA), there is a general upward trajectory from 6.69% at the end of 2022 to a peak of 7.72% in the first quarter of 2024. Although there is some fluctuation, with a slight decline to 5.95% by mid-2024, the ratio again increases to 7.41% by the second quarter of 2025, indicating a generally improving efficiency in generating operating income relative to total assets.
The Return on Assets (ROA), which incorporates net income, shows a more volatile pattern. From 2.69% at the end of 2022, it declines sharply to a low of 0.54% during Q4 2023, before gradually recovering to approximately 1.90% by mid-2025. This decline and subsequent partial recovery suggest challenges in net profitability during the period, possibly influenced by cost pressures or market conditions affecting net income.
The Return on Total Capital experienced significant fluctuation. It was exceptionally high at over 126% at the end of 2022 and remained elevated through early 2023, but then drastically declined to 22.54% in Q3 2023. After this sharp decrease, it stabilized around 20% to 24% through subsequent periods, reflecting variability in how effectively the company is utilizing all capital resources to generate returns. The initial elevated ratios may indicate high leverage or capital efficiency that diminished temporarily before stabilizing.
The Return on Equity (ROE) exhibits considerable volatility. It was robust at 37.63% at the end of 2022, then decreased markedly to a low of 1.76% at the end of 2023. Subsequent quarters show modest improvements, with ROE rising to approximately 6.18% by mid-2025. The sharp fluctuations in ROE suggest significant variability in net income attributable to equity shareholders, potentially driven by fluctuating net profitability, leverage changes, or other factors affecting net income margins.
In summary, Kodiak Gas Services, Inc. showed periods of strong profitability metrics, notably in Operating ROA and initial capital returns, but experienced notable declines in net income-related ratios during late 2023 and early 2024. While some ratios indicate recovery and stabilization, overall profitability appears characterized by volatility, with significant swings especially in ROE and ROA metrics, indicating periods of reduced net profitability despite somewhat steadier operating efficiencies.